Is bitcoin a scam? No, bitcoin is real. Are there crypto scams? Like with everything else out there, yes! You just have to do your research before putting hard earned money into any investment.
When I first started in bitcoin, though I really didn’t know much about it, I could see that what it was proposing was going to have a monumental impact on banking. I’d never been a fan of banks, minimum balances, service fees, overdraft fees, and so on. So when I heard about bitcoin and its potential to eliminate the bank as a middle man, I was interested, so I traded a little chunk of my savings from dollars to bitcoin. From there the wild ride began.
Since then, back in 2011, many different cryptos have appeared on the market, each one trying to be the next big thing. The only one I’ve ever bought is bitcoin. It’s the only one that I’d recommend anyone buy. And because I’m not a financial advisor, I will always say to talk to your’s before investing to be sure it’s a good fit for you. Talking to your advisor is also a good way to help stop any losses if you’re looking into one that may be more of a scam.
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This was a pretty good little video explaining what bitcoin mining is, and whether or not it’s still profitable to get into. Short answer: Nope! Unless you were mining before 2011, which most of us (including me) weren’t, we missed the boat on that one. And it was a pretty small boat to begin with.
But since you still hear the term “bitcoin mining” all over the place it’s a nice video if you still want to know what it is. If you want to get into bitcoin today, I suggest just buying in. It’s a lot easier and you’ll still reap the rewards. Just be careful, you could also reap the downfall if all of a sudden the market takes a crash, which there have been many of.
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MY BITCOIN TRANSACTION HISTORY
Jan 2011: Buy 10,000 @ $1.03 / $10,300
Dec 2017: Sell 10,000 @ $18,665.37 / $186,653,700 : Profit = $186,643,700
Withhold $75,000,000 (40%) for anticipated 2017 Capital Gains Tax = $$111,653,700 to reinvest.
Jan 2019: Buy 31,700 @ $3,517.12 / $111,492,704 / Bank: $160,996
July 2019: Sell 31,700 @ $11,213.60 / $355,471,120 : Profit = $243,978,416
Withhold $97,600,000 (40%) for anticipated 2019 Capital Gains Tax = $257,871,120 to reinvest.
March 2020: Buy 47,488 @ $5430.20 / $257,869,337 / Bank: $1,783
Apr 2021: Sell 47,488 @ $61,229.37 / $2,907,660,332 : Profit = $2,649,790,995
Withhold $1,060,000,000 for anticipated 2021 Capital Gains Tax = $$1,847,660,332 to reinvest
July 2021: Buy 52,200 @ $35,331,29 / $1,844,293,338 / Bank: $3,366,994
Nov 2021: Sell 52,200 @ $65,211.77 / $3,404,054,394 : Profit = $1,559,761,056
Withhold $625,000,000 for anticipated 2011 Capital Gains Tax = $2,779,054,394 to reinvest.
Jan 2022: Buy 75,500 @ $36,771.19 / $2,776,224,845 / Bank: $2,794,596
Feb 2022: Sell 75,500 @ $44,441.51 / $3,355,334,005 : Profit = $579,109,160
Withhold $232,000,000 for anticipated 2022 Capital Gains Tax = $3,123,334,005 to reinvest.
Hold Out $10,000,000 to create lifetime income stream. $3,113,334,005 to reinvest.
Feb 2022: Buy 88,665 @ $35,113.15 / $3,113,307,444 / Bank: $26,561
Total Estimated Tax Bill: $2,089,600,000. And how much are Billl Gates, Jeff Bezos, Elon Musk, and Mark Zuckerburg paying on their capital gains? Probably Zero!!
Total Banked: $9,717,761. If you read the blog you’ll know that I spent $5M on my new house at the beginning of Feb 2022. I am loving the pool! Then I put $1M into an account to furnish it. I used to live in a small, but decent apartment. I did not bring much in furnature to the new place. That would just be weird, and would look really bad. I did keep a few things to put down in Shawn’s room like the TV, TV Stand, futon, and the L-Shaped Desk. Everything else is going to be NEW!
So after the house that leaves $3,717,761 in the General Purpose bank account, and $10M to set up the lifetime income account. Time to go talk to my investment advisior and really freak him out. lol.
But I’m thinking of just keeping it simple, because that is the type of guy I am. I’m going to set up two checkng accounts. One is going to keep the base income account of $13.7M. The other is going to be my transactions account. I’ll move $15K every 1st of the month from the Base account to the Transactions account. That will be what I have to spend each month. Then since I can’t see myself spending $15K each month, what ever is left over I’ll put back into the Base account and start over with a fresh $15K balance on the 1st. Like I said, sounds stupid.
A Little Bit of This and That 